Ultratech Announces Fourth Quarter and Year-End 2016 Results

4Q 2016 Revenue of $51.3 million, up 82% year-over-year

4Q 2016 GAAP Net Income of $4.3 million; Non-GAAP Net Income of $8.4
million

4Q 2016 GAAP EPS of $0.16; Non-GAAP EPS of $0.31

SAN JOSE, Calif.--(BUSINESS WIRE)--
Ultratech, Inc. (NASDAQ:UTEK) a leading supplier of lithography,
laser-processing and inspection systems used to manufacture
semiconductor devices and high-brightness LEDs (HB-LEDs), today
announced unaudited results for the three-month period ended December
31, 2016.

For the fourth quarter of fiscal 2016, Ultratech reported net sales of
$51.3 million as compared to $28.2 million during the fourth quarter of
fiscal 2015.

On a GAAP basis, Ultratech's net income for the fourth quarter of fiscal
2016 was $4.3 million, or $0.16 per share, as compared to net loss of
$8.9 million, or $(0.33) per share, for the same quarter last year.

On a non-GAAP basis, Ultratech's net income for the fourth quarter of
fiscal 2016 was $8.4 million, or $0.31 per share, as compared to net
loss of $3.9 million, or $(0.14) per share, for the same quarter last
year.

At December 31, 2016, Ultratech had $267.6 million in cash, cash
equivalents and short-term investments. Working capital was $342.4
million and stockholders' equity was $12.70 per share based on
26,950,338 total shares outstanding as of December 31, 2016.

Non-GAAP Financial Measures

Ultratech prepares its financial statements in accordance with generally
accepted accounting principles (GAAP) for the United States and
supplements its GAAP financial results by providing non-GAAP measures to
evaluate the operating performance of the company. Ultratech's
presentation of non-GAAP net income is defined as GAAP net income
excluding the impact of share-based compensation, restructuring,
amortization of purchased intangible assets and non-recurring legal
expenses. Management believes the presentation of this non-GAAP measure
provides useful information to both management and investors by
enhancing the overall understanding of Ultratech's core operating
performance and enabling the comparison of Ultratech's results of
operations to its historical results operations as well as to the
results of operations of its competitors. Ultratech believes excluding
share-based compensation enhances the ability of management and
investors to evaluate its performance without reference to this expense
and to provide an alternate measure for comparing Ultratech's
performance historically and to its competitors. Further, management
believes presenting a non-GAAP financial measure that excludes
restructuring, amortization of purchased intangible assets and
non-recurring legal expenses provides management and investors an
alternate measure to evaluate Ultratech's performance without reference
to charges that it does not believe are reflective of its core operating
performance or ongoing operations. A description of the non-GAAP
calculations and a reconciliation to comparable GAAP financial measures
are provided in the accompanying table entitled "Reconciliation of GAAP
Net Income (Loss) to Non-GAAP Net Income (Loss)." Readers are reminded
that non-GAAP information is merely a supplement to, and not a
replacement for, GAAP financial measures.

Forward Looking Statements

Any statements in this communication about the Company's expectations,
beliefs, plans, objectives, prospects, financial condition, assumptions
or future events or performance, including statements regarding the
proposed acquisition of the Company by Parent, the expected timetable
for completing the transaction, benefits and synergies of the
transaction and future opportunities for the combined company that are
not historical facts are forward-looking statements. The Company intends
such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in Section 21E of
the Securities Exchange Act of 1934 and the Private Securities Reform
Act of 1995. In some cases, forward-looking statements can be identified
by the following words: "may," "will," "could," "would," "should,"
"expect," "intend," "plan," "anticipate," "believe," "estimate,"
"predict," "project," "potential," "continue," "ongoing," "outlook,"
"guidance" and similar expressions, although not all forward-looking
statements contain these words. These forward-looking statements are
based on our current expectations, estimates, assumptions and
projections about our business and industry, and the markets and
customers we serve, and they are subject to numerous risks and
uncertainties that may cause these forward-looking statements to be
inaccurate. Such risks and uncertainties include the timing and possible
delays, deferrals and cancellations of orders by customers; quarterly
revenue fluctuations; industry and sector cyclicality, instability and
unpredictability; market demand for consumer devices utilizing
semiconductors produced by our clients; our ability to manage costs; new
product introductions, market acceptance of new products and enhanced
versions of our existing products; reliability and technical acceptance
of our products; our lengthy sales cycles, and the timing of system
installations and acceptances; lengthy and costly development cycles for
laser-processing and lithography technologies and applications;
competition and consolidation in the markets we serve; improvements,
including in cost and technical features, of competitors' products;
rapid technological change; pricing pressures and product discounts; our
ability to collect receivables; customer and product concentration and
lack of product revenue diversification; inventory obsolescence; general
economic, financial market and political conditions and other factors
outside of our control; domestic and international tax policies;
acquisitions, cybersecurity threats in the United States and globally
that could impact our industry, customers, and technologies; the
occurrence of any event, change or other circumstances that could give
rise to the termination of the Merger Agreement, the failure to obtain
the approval of the Company's stockholders or the failure to satisfy any
of the other closing conditions, risks related to disruption of
management's attention from the Company's ongoing business operations
due to the proposed transaction, and the effect of the announcement of
the transaction on the ability of the Company to retain and hire key
personnel and maintain relationships with its customers, suppliers and
others with whom it does business, or on its operating results and
business generally. Additional risks relating to the Company and its
business are described under Item 1A, "Risk Factors," in the Company's
periodic filings with the SEC, including the Company's Annual Report on
Form 10-K for the fiscal year ended December 31, 2015 and its Quarterly
Reports on Form 10-Q for the periods ended April 2, 2016, July 2, 2016
and October 1, 2016. Given these risks and uncertainties, prospective
investors are cautioned not to place undue reliance on such
forward-looking statements. Further, any forward-looking statement
speaks only as of the date of this communication and the Company
disclaims any obligation to update any such forward-looking statements
or to publicly announce the results of any revisions to any of the
forward-looking statements to reflect future events or developments..

About Ultratech: Ultratech, Inc. (NASDAQ:UTEK) designs, builds
and markets manufacturing systems for the global technology industry.
Founded in 1979, Ultratech serves three core markets: front­end
semiconductor, back­end semiconductor, and nanotechnology. The company
is the leading supplier of lithography products for bump packaging of
integrated circuits and high-brightness LEDs. Ultratech is also the
market leader and pioneer of laser spike anneal technology for the
production of advanced semiconductor devices. In addition, the company
offers solutions leveraging its proprietary coherent gradient sensing
(CGS) technology to the semiconductor wafer inspection market and
provides atomic layer deposition (ALD) tools to leading research
organizations, including academic and industrial institutions. Visit
Ultratech online at: www.ultratech.com.

(UTEKF)

ULTRATECH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended

Twelve Months Ended

Dec 31,

Dec 31,

Dec 31,

Dec 31,

(In thousands, except per share amounts)

2016

2015

2016

2015

Total net sales*

$

51,306

$

28,254

$

194,051

$

149,176

Cost of sales:

Cost of products sold

23,864

14,118

93,122

71,159

Cost of services

3,223

3,268

12,194

12,585

Total cost of sales

27,087

17,386

105,316

83,744

Gross profit

24,219

10,868

88,735

65,432

Operating expenses:

Research, development and engineering

8,960

7,935

35,201

32,886

Selling, general, and administrative

11,067

11,682

45,412

46,835

Restructure of operations

-

(18

)

-

751

Operating income (loss)

4,192

(8,731

)

8,122

(15,040

)

Interest expense

(6

)

(10

)

(43

)

(80

)

Interest and other (expense) income, net

83

(25

)

613

442

Income (loss) before income taxes

4,269

(8,766

)

8,692

(14,678

)

Provision (benefit) for income taxes

(54

)

115

(2,545

)

450

Net income (loss)

$

4,323

$

(8,881

)

$

11,237

$

(15,128

)

Earnings per share - basic:

Net income (loss)

$

0.16

$

(0.33

)

$

0.42

$

(0.55

)

Number of shares used in per share calculations - basic

27,136

26,793

27,012

27,429

Earnings per share - diluted:

Net income (loss)

$

0.16

$

(0.33

)

$

0.41

$

(0.55

)

Number of shares used in per share calculations - diluted

27,403

26,793

27,333

27,429

* Systems sales

$

39,676

$

21,507

$

157,156

$

117,093

Parts sales

8,158

3,914

24,277

18,534

Service sales

3,372

2,733

11,891

13,149

License sales

100

100

727

400

Total sales

$

51,306

$

28,254

$

194,051

$

149,176

ULTRATECH, INC.

RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME
(LOSS)

(UNAUDITED)

Three Months Ended

Twelve Months Ended

Dec 31,

Dec 31,

Dec 31,

Dec 31,

(In thousands, except per share amounts)

2016

2015

2016

2015

GAAP net income (loss)

$

4,323

$

(8,881

)

$

11,237

$

(15,128

)

Share-based compensation

2,835

3,501

12,140

15,311

Restructure of operations

-

(18

)

-

751

Amortization of purchased intangible assets

409

423

1,658

1,707

Nonrecurring legal expenses

751

1,088

1,558

1,088

Tax and tax-related

110

-

(1,150

)

-

Non-GAAP net income

$

8,428

$

(3,887

)

$

25,443

$

3,729

Earnings per share - diluted:

As reported

$

0.16

$

(0.33

)

$

0.41

$

(0.55

)

Add back: per share impact of Non-GAAP adjustments

$

0.15

$

0.19

$

0.52

$

0.68

Non-GAAP per share income

$

0.31

$

(0.14

)

$

0.93

$

0.13

ULTRATECH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

Dec 31,

Dec 31,

(In thousands )

2016

2015*

ASSETS

(Unaudited)

Current assets:

Cash, cash equivalents and short-term investments

$

267,593

$

251,901

Accounts receivable

54,549

28,108

Inventories, net

50,475

65,398

Prepaid expenses and other current assets

7,658

3,862

Total current assets

380,275

349,269

Equipment and leasehold improvements, net

13,869

17,280

Intangibles assets, net

10,630

12,288

Other assets

10,798

10,359

Total assets

$

415,572

$

389,196

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Notes payable

$

1,500

$

5,120

Accounts payable

14,038

12,080

Deferred product and service income

4,352

4,499

Other current liabilities

18,028

12,146

Total current liabilities

37,918

33,845

Other liabilities

12,456

13,474

Stockholders' equity

365,198

341,877

Total liabilities and stockholders' equity

$

415,572

$

389,196

* The balance sheet as of December 31, 2015 has been derived from
the audited financial statements as of that date.